Selling a Co-Owned Property in California to Cover Funeral and Property Taxes

Disclaimer: This is educational information, not legal advice. For decisions that affect your rights, consult a licensed California attorney.

Detailed Answer — How to sell a co-owned property in California to pay for funeral and property tax expenses

This answer assumes a typical fact pattern: a property in California is owned by two or more people (co-owners), one owner has died or there is an urgent need to raise cash to pay funeral and ongoing property tax obligations, and the co-owners do not all agree immediately to sell. Below are the main routes you can take under California law, what each step involves, and the practical effect on funeral bills and property taxes.

1. First: identify how the property is owned

Ownership type matters:

• Joint tenancy with right of survivorship: When one owner dies, ownership passes automatically to surviving joint tenants outside probate. Surviving owners can sell without probate after showing a death certificate and updating title.
• Tenancy in common: Each owner holds a percentage interest that passes under that owner’s will or by intestate succession on death. A deceased owner’s share becomes part of that owner’s estate and may require probate to transfer clear title (unless a non-probate transfer device applies).

Check the deed or title report to confirm the form of ownership before deciding the route to sale.

2. If all co-owners agree to sell

This is the simplest path. Steps:

1. Obtain a current title report and a copy of the deed.
2. Open a joint escrow or appoint a selling co-owner’s agent (listing broker).
3. Use sale proceeds to pay funeral bills (if the bills are personal to the decedent and were obligations of the estate, the estate should properly pay them) and pay property taxes or prorate at closing.

If one co-owner recently died and title passed automatically (joint tenancy), sellers present a death certificate and complete title transfer documents so escrow can close. If the decedent’s share remains in an estate, proceeds distribution may need an appointed personal representative.

3. If co-owners do not agree: file a partition action

If co-owners cannot agree, California law allows any co-owner to ask a court to divide the property or sell it and distribute proceeds. This is called a partition action. The statutory framework for the right to partition appears in the California Code of Civil Procedure. See the statutory right to partition: Cal. Code Civ. Proc. § 872.010.

Key points about partition actions:

• The court can order a physical division (partition in kind) or, if that is impractical, a sale of the property with proceeds divided among co-owners according to their ownership shares.
• A court may appoint a receiver to manage and sell the property, collect rents, and pay necessary expenses (including property taxes) during the litigation.
• Costs of partition (attorneys’ fees, receiver, sale costs) typically come out of sale proceeds and can reduce the net available to cover funeral bills.

Because litigation takes time, it may not immediately stop a tax sale if property taxes are seriously delinquent. In urgent cases, a co-owner can seek temporary relief (for example, asking the court to appoint a receiver who will pay taxes) as part of the partition case.

4. Handling funeral expenses and priority claims

Funeral providers generally look for payment from the decedent’s estate. If the deceased’s estate holds assets (including a decedent’s ownership interest in a house), the personal representative (executor) can use estate assets to pay funeral bills as an expense of administration. If no probate is opened or estate assets are insufficient, funeral homes may pursue a claim against the estate or the person who contracted for the funeral.

If you are a co-owner and the funeral expenses are unpaid and urgent, options include:

• Ask co-owners to agree to a short sale or sale holdback for funeral costs at closing.
• Open probate so an executor can pay funeral expenses from estate assets and present a creditor claim if needed. See California Courts’ probate self-help page: California Courts — Probate Help.
• Consider a small-estate transfer procedure if the estate qualifies (a quicker alternative to full probate for limited-value estates).

5. Dealing with past-due property taxes

Real property taxes are a lien on the property. If property taxes go unpaid, county tax collectors can impose penalties, interest, and eventually initiate a tax-defaulted sale. To protect the property and preserve value for sale proceeds:

• Pay current and delinquent taxes from available funds or sale escrow proceeds (escrow can be structured to pay outstanding taxes at closing).
• A receiver appointed in a partition action can collect rents and pay taxes while litigation is pending.
• Contact the county tax collector as soon as possible to learn about penalties, redemption periods, and payment plans for delinquent taxes.

6. Practical sequence of steps to get cash quickly

1. Confirm ownership form on the deed and obtain a title report.
2. If ownership is joint tenancy and surviving owner(s) agree, open escrow and sell quickly; at closing, allocate proceeds to pay funeral and tax bills.
3. If the decedent’s share requires probate and the estate qualifies for a small-estate procedure, use that route to transfer title quickly. See California Courts’ small estate information: California Courts — Probate & Small Estates.
4. If co-owners disagree about selling, consult a real estate attorney about filing a partition action (Cal. Code Civ. Proc. § 872.010). Consider asking the court to appoint a receiver to protect the property and pay taxes.
5. Throughout, get a title company, escrow officer, or real estate attorney involved to ensure liens (including property taxes) are paid at closing so the buyer receives clear title.

7. How proceeds get divided and who pays what

Sale proceeds go first to satisfy liens (taxes, mortgages, other recorded liens) and court-ordered costs. Remaining funds split according to ownership shares or as the court orders in partition. If funeral bills are a claim against a decedent’s estate, they are paid out of the estate’s share before distribution; if the co-owners agreed to cover funeral costs from the sale proceeds, that agreement controls distribution.

Helpful Hints

• Get a title report early. It shows liens, mortgages, and recorded interests that must be paid at sale.
• Confirm whether the deed shows joint tenancy or tenancy in common; that determines whether probate is required.
• If you need cash fast, ask co-owners to sign a limited agreement to list and sell with a provision that specific funds (funeral, taxes) get paid at closing.
• If a co-owner died and there is no joint tenancy, check if the estate qualifies for small estate procedures to avoid full probate.
• Contact the county tax collector immediately if taxes are delinquent to learn about redemption periods or payment arrangements that can avoid a tax sale.
• Consider a short-term loan, bridge loan, or borrowing against your interest in the property only if you clearly understand the risk; consult a real estate or consumer attorney first.
• Keep written records of any agreement among co-owners about sale, distribution, or payment priorities.
• Partition actions can be expensive and slow. Mediation or a negotiated sale usually saves time and cost.
• Work with professionals: title company for a report, real estate broker for sale logistics, and an attorney for contested or probate-related matters.

Relevant legal starting points: the California right to partition is codified in the Code of Civil Procedure; see Cal. Code Civ. Proc. § 872.010 for the statutory right to partition: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=872.010&lawCode=CCP. For probate and small-estate information, see California Courts’ probate help pages: https://www.courts.ca.gov/selfhelp-probate.htm.

If you want, provide basic facts (who’s on the title, whether one owner is deceased, whether taxes are delinquent, and whether all owners agree to sell), and I can outline the fastest steps that typically apply in California.